X

Sign Up To Our Free Newsletter

Join Now

Thanks for subscribing to our free newsletter!

ERROR

  • 3 minutes Texas forced to have rolling brown outs. Not from downed power line , but because the wind energy turbines are frozen.
  • 7 minutes Scientists Warn That Filling The Sahara With Solar Panels Is A Bad Idea
  • 11 minutes United States LNG Exports Reach Third Place
  • 15 minutes Joe Biden's Presidency
  • 17 mins U.S. Presidential Elections Status - Electoral Votes
  • 11 hours Interest article about windmills and waterwheels in Europe
  • 6 hours Retired RAF pilot wins legal challenge over a wind farm
  • 2 days NYT:  The Supreme Court’s order (Re:  Trump’s tax returns) set in motion a series of events that could lead to the startling possibility of a criminal trial of a former U.S. president
  • 1 day Speaker Pelosi, "Tear Down This Wall"
  • 22 hours Chance for (Saudi)Arabian peninsula having giant onshore Gas too?
  • 2 days Disaster looming in UK offshore wind power
  • 2 days Wednesday Nikki Haley reached out to Trump for meeting at Mar-a-lago. Trump said No ! You blew it Nikki . . .
  • 20 hours “Cushing Oil Inventories Are Soaring Again” By Tsvetana Paraskova
  • 2 days Scientist clone endangered Black Footed Ferret from Ferret that died 30 years ago . It's a 100% exact genomic match.
Biden’s Energy Plans Threaten Alaska’s Oil Ambitions

Biden’s Energy Plans Threaten Alaska’s Oil Ambitions

Alaska’s oil days were already…

Russian Oil Giant Rosneft Sees Profits Slide 79% In 2020

Russian Oil Giant Rosneft Sees Profits Slide 79% In 2020

Rosneft reported a 79-percent drop…

Can Venezuela Rebuild Its Crushed Downstream Sector?

Can Venezuela Rebuild Its Crushed Downstream Sector?

U.S. President Biden’s installation in…

Nick Cunningham

Nick Cunningham

Nick Cunningham is an independent journalist, covering oil and gas, energy and environmental policy, and international politics. He is based in Portland, Oregon. 

More Info

Premium Content

What’s Behind The Mid-Week Oil Price Crash

Oil prices crashed mid-week on news that U.S. crude oil inventories spiked, offering evidence that the oil market is not as tight as expected only a few days ago.

U.S. inventories jumped by 10 million barrels last week, rising to 470.6 million barrels. That is about 34 million barrels higher than at this point last year, and stocks are up about 20 million barrels in the last month alone. Rising inventories, especially consecutive increases of this magnitude, cut against the narrative that the oil market is suffering from a supply deficit.

WTI crashed on the news, falling more than $2 per barrel in midday trading on Thursday. Adding to crude’s woes was news that Russia continues to produce in excess of its agreed upon cut as part of the OPEC+ deal. “When the U.S. crude-oil warehouses bulge to their highest levels since September 2017, while production continues to set new high-water marks, warning signals should be flashing red,” said Stephen Innes, head of trading at SPI Asset Management, according to Bloomberg.

The oil market was roughly balanced in April, after having fallen into a supply deficit on the order of about 480,000 bpd, according to Standard Chartered. While geopolitical flashpoints dominate the headlines and spread fear of supply risk, OPEC+ may not have a ton of room to increase production without creating another supply surplus, Standard Chartered said. The only…





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News